INCA Summer School 2004

1
INCA Summer School 2004

• Contract Monitoring for
• Governance Performance
• Anita Botha
• WZC (Pty) Ltd

2
Why do Contract Management Monitoring?

• LEGAL COMPLIANCE
• Municipal Systems Act
• Municipal Finance Management Act
• National Treasury Regulation 16 GG 25915
  16/01/2004
• Expected Regulations ito MFMA

3
Why do Contract Management Monitoring?

• PUBLIC ACCOUNTABILITY
• To obtain the services specified
• To ensure ongoing affordability
• To get value for money
• To ensure appropriate risk transfer
• for the benefit of the community.

4
Why do Contract Management Monitoring?

• GOOD GOVERNANCE
• PPP Management monitoring is a process that
  enables both parties to a contract to meet their
  respective obligations in order to deliver the
  objectives required from the contract.

It involves building a good working relationship
between the parties, which continues throughout
the project term.
It is managing the contract terms pro-actively
to anticipate future needs and to react
appropriately to unforeseen situations that may
arise.
5
Lifespan of Contract Management Monitoring
Plan, Design Contract
Monitor Manage
80
8
12
6
Planning Contracting - for good management and
monitoring
Feasibility Study - SLA or RFP Knowledge/Database
Contract

• Outcomes Based - Interpretative

• Service Standards

• Performance Guarantee

• Penalties

• Monitoring Fee

7
Managing the Legal / Operational Interface
Monitor Manage
80
8
12
Legal / Operational - Transfer of Knowledge

• Internal or External Management Monitoring?

• Skills Expertise

• Capacity

• Commitment

• Neutrality

8
Structuring Contract Management Monitoring
Service Delivery/ Performance Management
Partnership Management
Contract Administration
9
Structuring Contract Management Monitoring
Partnership Management
Corporate Governance
Trust and Attitudes
Communication and Information Sharing
Relationship Assessment
Dispute Resolution
10
Structuring Contract Management Monitoring
Contract Administration
Variation Management
Contract Maintenance
Financial Administration
11
Structuring Contract Management Monitoring
Service Delivery/Performance Management
Monitoring Matrix with KPIs
Service Delivery
Human Resources
Health Safety
Relevant Legal Issues
Asset Management Maintenance
Quality Assurance Management
Risk Management
Performance Management Review
12
WZC
13
Result of Structured Dedicated Contract
Management Monitoring
Meeting of the Minds Mutually Beneficial
Relationship for the Benefit of the Community
14
INCA Summer School 2004

• THANK YOU
• Anita Botha
• WZC (Pty) Ltd
• Tel [phone]
• Fax [phone]